Energy

Gazprom Export seeks arbitration against PGNiG over contract price

2 minute read

The logo of Gazprom company is seen at the St. Petersburg International Economic Forum (SPIEF) in Saint Petersburg, Russia, June 2, 2021. REUTERS/Evgenia Novozhenina

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MOSCOW, Jan 14 (Reuters) - Russia's Gazprom Export said on Friday it was seeking international arbitration against PGNiG for a contract price revision, a demand the Polish state-owned gas monopoly said it would fight in court.

The dispute is taking place against the backdrop of a broader standoff between Russia with the West and as Moscow awaits clearance from Germany and the European Union for its Nord Stream 2 gas pipeline to start gas exports.

Poland, which has taken steps to reduce its reliance on Russian gas supplies, has been one of the most vocal opponents of Nord Stream 2, which it says would increase Moscow's energy leverage against Europe.

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Gazprom Export said in a statement that it had filed a claim to retrospectively revise the price terms of a 1996 contract with PGNiG.

Gazprom Export said it had sent a request to PGNiG to revise the price of gas under the contract starting from November 2017, before making another request three years later, the company said.

"As business negotiations on the price revision in line with above requests did not lead to agreements, we referred the dispute to the arbitration, in full compliance with the contract terms," Gazprom Export said.

Pawel Majewski, president of PGNiG's management board, said in a statement that Gazprom Export's demand to increase the contract price was "groundless".

"We are prepared to prove this before the arbitration tribunal," he said.

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Reporting by Vladimir Soldatkin; Writing by Gabrielle Tétrault-Farber; Editing by Sandra Maler

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